Ethical Confrontations at Mbloom Ventures LLC: Hawaii's First Early-Stage Technology Fund

Abstract

This case study examines the inaugural venture capital financing effort by mbloom Ventures, LLC (mbloom), a ten million dollar early-stage technology investment partnership between the Hawaii Strategic Development Corporation (HSDC) and Rosemont Seneca Technology Partners (Rosemont), a private hedge fund. Following an announcement of the two recipients of funding—$500,000 each to Flikdate and Ozolio—information circulated that these two startups had been established by mbloom's two general partners. Allegations of conflict of interest and lack of transparency soon surfaced.